Woolworths has promised to freeze the prices of hundreds of its grocery staples until the end of this year,aimed at giving customers certainty on the cost of products from party pies to nappies.
Chief executive Brad Banducci in an email to be sent to customers this week will say food inflation has grown “to impact almost every product category”.
Banducci’s note to customers will acknowledge that poor weather conditions have further compounded cost pressures,leading to items such as iceberg lettuces being priced at more than $6.
Australian Food and Grocery Council chief executive Tanya Barden said the continuing problems along supply chains were a global issue that will continue to put pressure on food suppliers.
Loading
“These cost increases are affecting every part of the food supply chain from farms to retailers,and local manufacturers will need to pass on some price rises in order to remain in business,” she said.
A Coles spokesperson said that on top of keeping hundreds of staples to $1 or less,it has also tried to drop prices across the rest of its in-house brands.